The situation where you have a clear "dead man walking", even when you did everything correctly, is when opposing players block you in with roads, preventing your expansion.
Once one of your initial 2 villages are blocked, the 2nd village becomes a target for blockage, because everyone knows that blocking your 2nd village will effectively eliminate you from the game.
Not "really eliminate", you're still a player and are kinda forced to play. But you can't make a 3rd village, and basically have no pathway to victory. A few unlucky rolls, or an opponent's lucky "Road Building" card, can bring up the road-block strategy extremely quickly.
A lot of people also play with the houserule no trading because there is too much kingmaking in trading. It's too easy to place aggressively for ore if you know you can trade for whatever you're missing of the settlement. If you have to 4:1 it's a bit more of a tradeoff.
Otherwise you're all sitting around a board that randomly generates resources for you to spend and sorta get in each other's way with road and settlement placements. If you want semi-solo Euro games, play something with way less dice variance!
The trades and dynamic that arises from the mechanic are pretty much the only reason to play imo. Otherwise the dice mechanics are way too strong as you point out.
But as you can see, the idea quickly became way too complicated and we never implemented it.
Removing trading sounds like a terrible idea. Being able to monopolise a resource just to trade it for what you really need, is a feature, not a bug. Some resources are rare, and you need to take that into account during placement.
The optimal strategy is to trade with players weaker than you who have something worth trading.
I've had many games where the "dead man walking" comes into effect because a player generates too few resources or not in demand resources (usually by bad initial placement) and therefore is only useful to squeeze for the occasional resource. They can't engage in constant trades because they literally have nothing, potentially not even as a space blocker. So optimal strategy becomes mostly ignore them except for kingmaker.